The Hindu Business Line : Govt may raise threshold limit for SSI sector

THE Government may consider a proposal for increasing the threshold limit for the small-scale industry from the existing Rs 1 crore level, official sources said here on Thursday.

Sources said that the decision had already been forwarded by the SSI board in January this year. However, sources said it was still too early to say whether the new threshold limit would be fixed at Rs 3 crore or Rs 5 crore.

Meanwhile, the conference of the Ministers for small-scale industry and khadi and village industry from the various States and Union Territories opens in the Capital on Friday. The conference is likely to consider, among other issues, the expansion of credit facilities for the sector, apart from looking at ways and means for strengthening technological and market support.

In addition, the problems created by inspector raj is also to come in for scrutiny.

Addressing a press conference on the eve of the meeting, the Minister for Small Scale Industries and Agro Rural Industries, Mr Mahabir Prasad, hinted that the funds provided to the States under the Prime Minister Rozgar Yojna which have not been utilised by some States could be diverted to others which have made better use of the allocated funds. The Minister, however, refused to name the States which have failed to utilise the funds.

The Minister added that the Government was preparing a comprehensive package for the sector and had sought the assistance of the Prime Minister, Dr Manmohan Singh, and the Planning Commission in this connection.

While refusing to be drawn into specifics of the package, the Minister did say that it would promote technology development and the setting up of small-scale industries in village clusters.

Besides, the Ministry has already written to the Prime Minister and the Finance Minister, Mr P. Chidambaram, seeking an interest rate cut on bank loans to the sector.